WSPP Overview

The WSPP exists to provide a catalyst for an efficient and robust wholesale electric power market that allows WSPP members to effectively manage their power deliverability and price risk and create opportunity.

The WSPP Agreement is open to power sellers and customers, though it provides only for wholesale and not retail sales. Currently, there are more than 300 members.

The Agreement is used to allow transactions to occur without constant renegotiations of contract terms and to standardize terms, thereby promoting liquidity in the market. Currently, the WSPP Agreement is the most commonly used standardized power sales contract in the electric industry.

The WSPP membership has devoted much time and resources to continuous updating of the WSPP Agreement to ensure that its terms represent the state-of-the-art terms for power sales contracts.

The current version was the result of a consensus reached by a diversified group of power sellers and consumers, including most of the major players in the industry. Because of the constant changes in the industry, this is a continuous process with the WSPP attempting to ensure that its contract stays up to date.

The WSPP operates through its committees. Each member has one vote on each committee. Each member must select one representative and one alternate and make those selections known to the organization.

Organizational Structure

Operating Committee – the OC evaluates contract changes in the first instance. It also establishes operating procedures and procedures for evaluating membership applications. The OC recommendations then are forwarded to the Executive Committee. OC officers include a Chairman, Vice Chairman, and Secretary.
Executive Committee – the EC decides whether to adopt OC recommendations. Consensus is required given the 90 percent voting requirement to make changes. Any changes to the WSPP documents are filed with FERC and do not take effect until FERC accepts the filing. Each member of WSPP is represented on the EC, and is considered a board member as defined by law. EC officers include a Chairman, Vice Chairman, and Secretary.
Administrative Committee – the Admin Committee is made up of the Chairman, Vice Chairman, and Sectretary of the EC, and the Chairman and Vice Chairman of the OC. Their task is to execute the administrative affairs of the organization including budgeting, auditing, contract administration, financial management, and legal management.
Audit Committee – the audit committee is created by the by-laws and includes ???. The duty of the audit committee is to annually review the financial condition and financial systems employed by the organization to ensure compliance with ???.
Contract Sub-Committee – the Contract Sub-Committee was created by the OC and is tasked with entertaining, evaluating and codifying proposed changes to the WSPP Agreement.
Operating Agent – the Operating Agent is under contract with the organization to be the central point of contact for WSPP operations.

Other ad-hoc committees may be created to address specific issues.

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